May 3, 2019
Do you know which company Google acquired back in 2012 when it was struggling with its Google Wallet offering? Or the name of the platform provider for mobile financial services that was acquired by Visa in 2010, when FinTech was not yet mainstream? If you do, there are still many to whom these companies would be unfamiliar.
The number of technology firms targeting financial services increased after the global financial crisis of 2008, but the classifying term FinTech and the wave of innovative products it brought in its wake were not widely noticed until 2013. Moreover, it wasn’t until 2018 – just a year ago – that FinTech as a term was included in the Oxford English Dictionary. However, FinTech, as a practice, has been around for a while, and startups engaged in innovation before the term got popular were noticed by larger companies as M&A prospects. Here is a list of 19 such FinTech companies that got acquired before FinTech became a buzzword:
eCD Market is a US-based company founded in 2009. It is an online marketplace that connects cash investors and banks. Through eCD Market’s platform, treasury professionals can monitor outstanding CD orders and track & report on all their CD holdings. It was acquired by StoneCastle Cash Management, a leading provider of cash management products for institutional investors and funding solutions for community and regional banks. The acquisition was aimed to provide StoneCastle’s treasury and bank clients with innovative investment and funding solutions.
Fundspire is a US-based company founded in 2009. It is a leading cloud-based financial technology provider in the hedge fund industry. Fundspire provides an innovative web-based platform for analytics and reporting that enables investment professionals to source ideas, analyze risks, create portfolios, and build client reports. In 2012, it was acquired by eVestment, a provider of a database and cloud-based analytics software. The acquisition aimed to expand eVestment’s expertise, scale, and capabilities to offer a better portfolio of solutions across all asset classes available to institutional investors.
UNX is a US-based company founded in 1999. It is an agency broker that provides advanced electronic trading solutions and premium services for institutional investors. Its solution UNX Catalyst is an electronic trading portal and broker-neutral execution management system for equities and portfolio trading for institutional trading clients. In 2012, was acquired by Mantara, a provider of technology solutions for integrated multi-asset trading and analytics.
Zecco Trading is a US-based company founded in 2006. It is an online stock brokerage and investment company that offers low-cost stock trades and low-cost options trades. In 2012, it was acquired by TradeKing, an online broker that provides tools and research for the online trading of stocks, options, and bonds. This merger created a new, single-holding company for both firms called TradeKing Group, Inc.
QuantHouse is a France-based company founded in 2005. It is a provider of end-to-end systematic trading solutions, such as ultra-low latency market data technologies, algo-trading development frameworks, and others. In 2012, it was acquired by S&P Capital IQ, a provider of multi-asset class & real-time data, research, and analytics products & services for financial services and advisory firms.
TxVia is a US-based company founded in 2006. It offers advanced transaction processing technology for emerging payments and financial services, as well as comprehensive supporting services. It enables electronic payments with a platform-as-a-service delivery model. TxVia’s clients include some of the largest payments companies in the world. In 2012, it was acquired by Google to fuel its Google Wallet ambitions. The acquisition took place in 2012 when Google was struggling to increase merchant and customer adoption of its mobile payments offering, and some key management people of Google Wallet were leaving.
ClairMail is a US-based company founded in 2004. It provides mobile solutions for banking, payment and credit card companies. In 2012, it was acquired by Monitise, a UK based mobile banking specialists that offer technology and services for mobile banking, payments, and commerce networks. It acquired its competitor Clairmail for $173 million with the aim of global expansion.
Misys is a UK-based company founded in 1979. It provides a portfolio of financial services software to the market. Its solutions cover retail and corporate banking, lending, treasury, capital markets, investment management, and enterprise risk. It offers a unique componentized, open architecture. In 2012, it was acquired by Vista Equity Partners, a leading private equity firm. In 2017, it was again acquired by Finastra.
eFront is a France -based company founded in 1999. It is a provider of alternative assets software solutions for the private equity, real-estate investment, banking, and insurance sectors. In 2012, it was acquired by Francisco Partners, a leading technology-focused private equity fund. In 2019, BlackRock acquired the company for $1.3 billion
Orca, Inc., is a US-based company founded in 2008. Orca provides a payment processing alternative for social networks & online games to accept payments and send marketing messages. In 2012, it was acquired by Ingk Labs, which builds early-stage disruptive technologies by employing an intellectual property acceleration model.
Crivo is a Brazil-based company founded in 2000. It offers a credit and risk assessment software, which allows its users to make a decision in less than three seconds. In 2012, it was acquired by TransUnion, which offers credit protection including credit alerts, credit reports, and credit scores.
DebtMarket is a US-based company founded in 2007. It is a financial market where participants can issue new debts or buy and sell debt securities. In 2011, it was acquired by Intercontinental Exchange, an operator of regulated exchanges and clearing houses serving the risk management needs of global markets.
Garlik is a UK-based company founded in 2005. Garlik Limited provides services that help protect online consumers from identity theft and financial fraud. In 2011, it was acquired by Experian.
Fundamo is a South Africa-based company founded in 2000. It is a leading platform provider of mobile financial services for mobile network operators and financial institutions in developing economies. In 2011, it was acquired by Visa for $110 million. Visa is an American multinational financial services company that facilitates electronic payment systems throughout the world. Fundamo offers a mobile financial services enterprise platform, a mobile wallet, as well as mobile banking. It also provides mobile remittance connectors and mobile commerce modules for configurable integrated payment & purchasing options and mobile debit card modules.
OptionsXpress is a US-based company founded in 2000. It is an online brokerage firm that provides Internet-based options, futures, stock, mutual fund, and fixed-income brokerage services to investors located in the US as well as globally. In 2011, it was acquired for $1 billion by Charles Schwab, a US-based financial institution that provides brokerage and banking services.
OpenFinance is a Spain-based company founded in 2002. It provides front-office solutions for financial advisory and portfolio management. It offers a suite of products that can be fully integrated with third-party software while providing financial institutions with solutions for their strategic needs. In 2011, it was acquired by Infobolsa, a Madrid-based company that provides financial and property information.
QuIC Financial Technologies is a Canada-based company founded in 1998. It develops simulation, risk calculation, and pricing platform solutions for financial institutions and companies. In 2011, it was acquired by HIS, a provider of information and analysis to support the decision-making process across industries.
SecurePay is an Australia-based company founded in 1999. It offers a simple, secure, and efficient online payment solution. In 2010, it was acquired by Australia Post, a government-owned corporation that provides affordable postal, retail, financial, and travel services. SecurePay now provides online payment solutions to 40,000 Australian businesses & organizations and works with e-commerce partners & developers all over Australia.
Home-Account is a US-based company founded in 2008. It is a mortgage-finding service that targets America’s 75 million borrowers save money and make smart mortgage choices. Home-Account’s service grades and analyzes borrowers’ current mortgages, presents scenarios to improve their financial situation and then matches each borrower to the best mortgage options in the market. In 2010, it was acquired by Bills.com, an online resource providing advice on mortgage loans, debt help, insurance, loans, and credit products.